Gold Prices Rise on MCX Amid Decline in Oil Prices and Expectations of Lower Interest Rates

Gold prices on MCX traded at Rs. 1,52,795 per 10 grams on September 23, up 0.05% from the previous day's close. The increase in gold prices comes as oil prices continued to decline over the past few sessions, reducing expectations of further interest-rate hikes by the Federal Reserve.

Meanwhile, Brent crude futures fell 1.10% to USD 98.16 per barrel, while US West Texas Intermediate (WTI) edged lower by 1.67% to USD 89.01 per barrel. The decline in oil prices has a direct impact on gold prices as they are often inversely related.

Domestic Gold Prices also saw an increase with 24K gold rising by Rs. 87 to Rs. 1,54,200 per 10 grams and 22K gold advancing by Rs. 80 to Rs. 1,41,350. Mumbai and Kolkata mirrored prices at Rs. 1,54,200, while Delhi was at Rs. 1,54,350 and Chennai at Rs. 1,54,200.

US gold prices fell on Tuesday, pressured by hawkish signals from Federal Reserve policymakers that reinforced expectations of higher interest rates for longer. Spot gold declined 0.32% at USD 4,344.51 per ounce, while US gold futures rose 0.12% at USD 4,381.55.

Standard Chartered highlighted firm demand, while Goldman Sachs retained its end-2027 gold forecast at USD 5,400 per ounce, noting tighter policy may slow the rally rather than derail the longer-term trend. Goldman Sachs also warned that three additional rate hikes could push gold toward USD 4,070 before recovering toward USD 4,200 by end-2026 as central-bank purchases continue.